Galaxy Surfactants Ltd's Q2FY19 consolidated net profit rises 13.47% yoy to Rs46.32cr

The company’s consolidated revenue stood at Rs685.33cr, up 12.33% yoy but down 4.31% qoq.

Nov 13, 2018 01:11 IST India Infoline Research Team

Galaxy Surfactants Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 685.33 12.3
EBITDA 86.90 17.6
EBITDA Margin (%) 12.7 57
Net Profit (adjusted) 46.32 13.5
***EBITDA margin change is bps
Galaxy Surfactants Ltd's consolidated revenue for Q2FY19 came in at Rs685.3cr, up 12.3% yoy. The operating profits for the quarter stood at Rs86.9cr, a rise by 17.6% yoy. The EBITDA margin expanded by ~57bps yoy in Q2FY19. The net profit after tax came in at Rs46.3cr, an increase by 13.5% yoy.

• Gross margin expanded by ~162bps yoy to 29.5% on account of likely improvement in product mix and higher realizations during the quarter. The absolute gross profit increased by 18.9% yoy to Rs202.0cr backed by higher sales volume made by the company. This is despite volatile raw material prices and foreign exchange fluctuations.
• EBITDA margin increased by ~57bps yoy on account of high operating leverage. However, other expenses have increased by 23.5% yoy to Rs73.4cr on likely foreign exchange losses.
• Effective tax rate increased to 33% during Q2FY19 vs. 27% during Q2FY18. This led to a drag in the net profit of the company during the quarter.
• Total borrowing has increased to Rs359cr as on September 30, 2018 vs. Rs291.9cr as on March 31, 2018.

Technical View:

Galaxy Surfactants Ltd is currently trading at Rs. 1,182.80, down by 1.1 points or 0.09% from its previous closing of Rs. 1,183.90 on the BSE.
The scrip opened at Rs. 1,181.05 and has touched a high and low of Rs. 1,185.05 and Rs. 1,170.05 respectively. So far 5,792 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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